Should the likes of Goldman Sachs and others rush to pay back their TARP funds? You might think that execs were incented, now that they can only make $500,000 a year. You might also think that they would want to stop being second guessed about such things as corporate jets. But Breakingviews notes that the banks have been given what now appear to be terrific terms. Top banks that got the first $125 billion in TARP funds only had to pay a 5 percent rate on the preferred shares and offer warrants for 15 percent of the preferred investment. The rates right now would be much higher.

Breakingviews notes that if Goldman refinanced its $10 billion of TARP funds at 10 percent and had to offer warrants for the same number of common shares as preferred shares (the terms of the Warren Buffet deal), it would pay an extra annual interest cost of $500 million plus, nearly seven times the dilution when and if the warrants kicked in.

For more:
- here's the article via Fortune

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TARP news from FierceFinance